Bitcoin faces massive selling pressure from Mt. Gox! Claims announced: 200,000 BTC potentially unlocked within the next two months.

Bankrupt cryptocurrency exchange Mt. Gox has sent a recent email to its creditors confirming ownership of the exchange’s account addresses previously entered by the creditors. The exchange will now proceed with the claims process. dForce founder Yang Mindao stated that Mt. Gox may unlock 200,000 bitcoins in the next two months to pay the creditors, which could potentially create significant selling pressure for bitcoin. Mt. Gox went bankrupt in 2014 after losing 850,000 bitcoins due to hacking. After years of legal battles, the exchange opened the registration for creditors to file claims in October of the previous year. 140,000 bitcoins were waiting to be delivered for repayment. The bankruptcy trustee of Mt. Gox then announced in November last year a plan to start making cash payments to the creditors, with payments expected to continue until 2024. Yang Mindao pointed out that this means bitcoin may face significant selling pressure in the short term. In fact, in December of last year, Mt. Gox creditors began receiving payments through PayPal in Japanese yen. However, Yang Mindao’s claim of 200,000 bitcoins being sold off is likely inaccurate. Mt. Gox previously disclosed that its remaining assets include 142,000 bitcoins, 143,000 bitcoin cash, and 6.9 billion yen. According to Arkham Intelligence, the Mt. Gox address still holds over 137,000 bitcoins, worth about $5.51 billion. If these bitcoins are unlocked in the short term, the market is expected to face massive selling pressure. It is worth noting that since the approval of the Bitcoin spot ETF by the US Securities and Exchange Commission (SEC), the price of BTC has been continuously dropping from its high point of $48,969 on the 11th and fell below the $40,000 mark this morning. It is widely believed that the recent decline in Bitcoin is due to the continuous profit-taking by Grayscale GBTC investors, as the GBTC has been approaching zero premium and has high management fees. GBTC is currently the world’s largest Bitcoin ETF, previously holding over $25 billion worth of Bitcoin. Ran Neuner, co-founder and CEO of Onchain Capital, warned earlier this month that Bitcoin may face a period of selling pressure because $25 billion is a significant position, and even if only 20% is redeemed, it would mean $5 billion of selling pressure in the market. According to Arkham Intelligence, Grayscale GBTC still holds about 573,000 bitcoins, equivalent to about $23 billion. If combined with Mt. Gox’s approximately 140,000 bitcoins, Bitcoin may face potential selling pressure of over 700,000 bitcoins in the short term. The Bitcoin market is expected to remain volatile in the near future.